Wells Fargo profit flat, revenue falls short

EmilyGlazer

Wells Fargo & Co. said its first-quarter profit was flat as the nation's third-largest bank remains stuck in the spotlight for its sales practices scandal more than six months later.

The San Francisco-based bank reported a profit of $5.46 billion, or $1 a share. That compares with $5.46 billion, or 99 cents a share, in the same period of 2016. Analysts polled by Thomson Reuters had expected earnings of 97 cents a share.

Revenue slipped to $22 billion. Analysts had expected $22.32 billion.

Wells Fargo, led by Chief Executive Timothy Sloan, had been one of the most consistent big banks at growing earnings and revenue. Shares dropped though last year after the bank agreed to a $185 million settlement with two regulators and a city official over opening as many as 2.1 million accounts with fictitious or unauthorized information.

The bank's shares bounced back following the election, rising 17%.

That compares with a 19% jump by the KBW Nasdaq Bank index of large commercial lenders over the same period.

Wells Fargo faces an potentially contentious shareholder meeting on April 25, with influential proxy advisory firm Institutional Shareholder Services Inc. recommending shareholders vote against 12 of 15 directors. But earlier this week the bank's board put out the results of its independent investigation, placing much of the blame on two former top executives.

It also faces a spate of state and federal investigations, including by the Department of Justice and the Securities and Exchange Commission.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.